Exam 8: Accounting for Purchases and Accounts Payable

A list of creditors and the balances owed to them is called a schedule of ____________________.

Since they are liability accounts, creditor's accounts in the accounts payable ledger normally have ____________________ balances.

Which of the following statements is correct?

In a firm that uses special journals, the purchase of merchandise for cash is recorded in the

To record a return of merchandise purchased on credit on the books of the buyer, the accountant would

Which of the following accounts has a normal debit balance?

Purchases of merchandise on credit should be recorded in the ____________________ journal.

In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the

One of the supplier accounts from the accounts payable ledger for Paragon Video is shown below. Explain each of the entries that have been posted to this supplier's subsidiary ledger account.

The Fast Frame Shop had the following transactions for the month of January 2013. Record the transactions on page 7 of a purchases journal and page 9 of a general journal. Total, prove, and rule the purchases journal as of January 31.

The entry to record a purchase of merchandise on credit includes

The source document for recording a purchase of merchandise on credit is

The discounts that are offered by suppliers to encourage quick payment of invoices by customers are known as ____________________ discounts.

Explain each of the following credit terms. A) n/30 B) n/10 EOM C) 2/10, n/30 D) 1/10, n/20 E) 3/5, n/30

In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the

Postings to the accounts payable ledger should be made

Which of the following statements is not correct?

After damaged goods are returned, the supplier issues a(n) ____________________ memorandum.

At the end of February 2013 and before the purchases journal was posted, selected general ledger account balances for Volter Repair Services were as follows (each account had a normal balance): The purchases journal had the following totals: Purchases, $28,000; Freight In, $1,000; Accounts Payable, $29,000. Calculate the ending balance of each of the three accounts after the posting from the purchases journal. Indicate whether each balance is a debit or credit.

The accounts payable ledger for Dora's Dollar Shop is shown below. Prepare a schedule of accounts payable as of March 31, 2013.